Foreign investment flow reaches new post-crisis high in Romania in 2017

The foreign direct investment flow in Romania went up by EUR 280 million in 2017 versus 2016, reaching almost EUR 4.8 billion, a new post-crisis high. The total foreign investment inventory thus reached EUR 75.85 billion, according to data presented by Romania’s National Bank (BNR). However, the foreign investment inventory as a percentage of the country’s GDP declined from 41% in 2016 to 40.4% in 2017, as the economy grew faster than the investments. Foreign investors made equity investments worth EUR 3.97 billion in 2017, including reinvested profits worth EUR 1.73 billion. The net loans foreign companies granted to their local subsidiaries totaled EUR 829 million. Most of the new foreign investments went into four sectors, namely manufacturing industry (EUR 1.2 billion), banks and insurance (EUR 960 million), construction and real estate (EUR 929 million) and trade (EUR 897 million), according to BNR data. Greenfield investments were only EUR 77 million while mergers and acquisitions totaled EUR 213 million. Foreign companies increased their turnover by 11% in 2017, to EUR 164.8 billion, and their workforce by 45,000 people (3.6%), to 1.2 million employees. Foreign direct investment in Romania, up 30% in first half editor@romania-insider.com (photo source: Pixabay.com)